Now that Bitcoin is gaining more popularity all over the world; the time has come – once again – for central banks to warn about the potential dangers of digital currency. Just a few days ago, a similar warning was issued by the Minnesota Commerce Commissioner. But this time, it’s the central bank of Kenya issuing a statement on trading or holding Bitcoin and other virtual currencies.

"The central bank of Kenya then goes on saying how Bitcoin and other virtual currencies are not legal tender in the country, and how no protection exists in the event of something going wrong. A small list of the risks associated with buying, holding, and trading Bitcoin and other digital currencies are then presented in the paid advert."

This warning should also be extended to the local currency and other fiats.